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ASIAN FOOTWEAR & RUBBER CORPORATION vs.

SORIANO
ASIAN which is engaged in the production of footwears, bought from Jacinto Rubber and
Plastics Co., Inc. (JACINTO) eight (8) parcels of land together with the permanent
improvements thereon. The purchase price was P450.00 per square meter plus assumption by
ASIAN of JACINTO's obligation to the Philippine Banking Corporation in the amount of
P2,284,932.11. Subsequently, ASIAN had obtained transfer certificates of title to the lands which
it had bought.
Asian had been operating business operations peacefully until May 16, 1985, when respondent
Deputy Sheriff Soriano, together with some policemen and other persons went to the premises
of petitioner Asian to enforce an Alias Writ of Execution commanding the Acting Sheriff of the
NLRC, "to proceed to the premises of respondent Jacinto Rubber and Plastics Company, Inc.,
and collect the amount of P 765,998.99 representing complainants' gratuity pay. If you fail to
collect the said amount in cash, you may cause the full satisfaction of this writ out of the
movable goods and chattel, or in the absence thereof, the immovable properties of the
respondent not exempt from execution."
ASIAN resisted the execution on the ground that the properties sought to be levied were its own
and not JACINTO'S. The sheriff reported ASIAN's posture to Vivar and in a conference with
ASIAN he verbally intimated that ASIAN was a purchaser in bad faith so that the writ of
execution could be enforced against it. Hence, the instant petition.

ISSUE: whether sale of property being levied on execution was done in bad faith

RULING: No, the sale of property was not done in bad faith, hence, the writ of execution should
not be enforced against it.
The record shows that when ASIAN bought the JACINTO properties, the latter had already
stopped its business operations. In fact, it had applied with the Ministry of Labor for clearance
for a total shotdown. Moreover, at the time of the sale the only lien annotated on the certificates
of title was the mortgage in favor of the Philippine Banking Corporation executed by JACINTO.
Finally, there is nothing to show that ASIAN is JACINTO by another name. In the light of the
foregoing, if there is nonetheless suspicion that the sale of the JACINTO properties to ASIAN
was not in good faith, i.e. was made in fraud of creditors, a government functionary like the
respondent labor arbiter is incompetent to make a determination. The task is judicial and the
proceedings must be adversary.